This is not better than Starbucks I rather purchase Starbucks store the test is not the same. Yes, the price did have an impact on my decision because it proved that the higher the price the better the product coffee is an important drink. Promotion Starbucks spends 3% of revenue on ads. But spends more on ensuring customer satisfaction to increase word of mouth. In terms of advertising, I remember seeing a lot of Promotion throughout social media, free samples, credit card discounts that made me aware of Starbucks, which is when I start researching this store, where they are located at.
Starbucks is a company that are very well known so easy to attract customers. Third, Starbucks should further improve its technological progress and expand its stores as the future of starbucks sales will increase let alone the united states of the people who depend on coffee if not overcome from now on there can be a buildup of customers who can make people lazy to buy at starbucks and move to another
Starbucks differentiate itself from other coffee shops by providing unique customer experience. It has very high standards of customer service, due to which it enjoys customer loyalty. Starbucks has been facing stagnant coffee sales and to overcome this, the company has decided to continue its global expansion. Starbucks has been looking to expand its product mix. To achieve this Starbucks has come up with a new concept called Starbucks evenings.
Another weakness is product pricing. Starbucks offer great quality of coffee and services to customers. This affects the price of the coffee become expensive. The price of new product will be expensive because of this weakness. The opportunity is Starbucks can increase their product offerings.
The brand is widely-recognizable in their logo alone. Starbucks takes pride in its quality atmosphere, product line suppliers and partnership that has sustained its competitive advantage and their reputation. Finally, as mentioned earlier, Starbucks benefits from high employee retention rate by saving on training costs and high employee engagement and investment in the organization. Starbucks takes pride on promoting within to help boost morale and performance. Their total rewards program is also used to attract, motivate and retain employees.
Political • Growing demand and supply shortage has increased world coffee prices. • Favorable advantage to accessing raw material through supplier relationships. • Fair-trade practices include its Coffee and Farmers Equity (C.A.F.E.) program among other fair trade policies and agreements. • Starbucks adheres to local, national and international government laws and policies and tightly control labour practices, avoiding scrutiny and negative imagery from being a large corporation.
The high price elasticity of demand of Starbucks ' coffee in Shanghai can be one factor and Starbucks also maintain the high price through taking action to influence consumers’ sensitiveness for high prices. Price elasticity of demand It is effective to use PED to measure consumers’ responsiveness of the quantity of goods demanded to the change in prices. There is the formula to calculate the PED: When one good is inelastic, which means the responsiveness of the quantity demanded doesn’t change a lot despite the price increases, the PED will less than 1. Instead, if the PED is more than one, the good is
CRM is frequently achieved using customer loyalty programs and these programs ultimately result in an upsurge in business profits by focusing on customer relationships. An understanding of how to manage customer relations also permits a retailer to gain a competitive advantage over their competitors and thus, Starbucks aims to maintain their CRM to remain as the market leader. Starbucks recognizes that consumer satisfaction is subjective and therefore it is challenging to measure. So, one way to gain access to customer information is to offer programs such as feedback programs (Appendix A) which enable customers to voice out questions, comments and feedbacks of their opinions on Starbucks. This empowers Starbucks to progress with the help of customer responses consequently resulting in higher level of overall satisfaction.
Whereas, Starbucks has the biggest strength of its brand name value in the world coffee industry. It is not comparable with the others. It helps to boost the customer’s credibility for the brand. Therefore, the company is started from the United State, but they would be able to have had lots of coffee chains across the globe. Besides, as mentioned above, Starbucks give star points depending on your purchasing price and the result of the reward events.
IMPACTS OF ECONOMIC FACTORS ON STARBUCKS The ongoing global economic recession is the prime external economic driver for Starbucks. As I already mentioned, this factor dented the profitability of Starbucks. This has convinced buyers to shift to cheaper alternatives. As they did not quit buying coffee, Starbucks should seek an opportunity here.The company has to deal with rising labor and operational costs. The inflationary environment and falling profitability is causing a lot of stress.